CONCACAF cuts ties with firm caught in FIFA scandal
Jeff Webb at CONCACAF’s 30th Ordinary Congress
(CNS): The Confederation of North, Central America and Caribbean Association Football (CONCACAF) has cut ties with the sports marketing firm Traffic, which was cited in the US justice department’s massive FIFA corruption and racketeering investigation for allegedly bribing football officials. CONCACAF said Monday that the relationship has come to end by mutual agreement but it will not impact the federation’s promotion or sponsorship of regional tournaments.
“CONCACAF and Traffic Sports USA have decided to part ways and dissolve their commercial rights agreement. Nonetheless, CONCACAF remains committed to organizing and executing best-in-class competitions for our member associations, fans, players, coaches, and sponsors, including the 2015 CONCACAF Gold Cup,” officials stated in a release this week.
CONCACAF said it will now service existing sponsorships through its in-house sales and marketing team and the process for selecting commercial rights partners and vendors in the future is under review as part of the overall reform of the organisation following the corruption scandal which has seen former CONCACAF officials indicted, including Cayman’s own Jeffrey Webb.
The agreement with Traffic Sports USA that has been terminated included rights to the next four editions of the biennial Gold Cup (2015, 2017, 2019, 2021), as well as seven additional seasons of the annual Scotiabank CONCACAF Champions League, from the 2015/16 edition through the 2021/22 tournament. It also incorporated rights to all other events organized by the Confederation, such as youth tournaments, Olympic qualifiers, and Futsal.
CONCACAF is in the process of attempting to clean house after the revelations in the 167-page indictment that alleges a catalogue of kickbacks and bribes surrounding the region’s tournaments and games. The current executive committee approved an expansive reform framework at the weekend that “seeks to substantially strengthen the Confederation’s governance, management, and operations”, officials said.
The goal is to improve governance, increase public disclosure, and enhance anti-corruption controls.
“This Reform Framework reflects CONCACAF’s commitment to strengthening our governance, management, and operations,” CONCACAF said in a statement about the reforms. “These reforms are intended to apply best practices for sound corporate governance to CONCACAF’s business operations. In implementing the Reform Framework, the Confederation will demonstrate to its fans, sponsors, member associations and other stakeholders that CONCACAF is resilient and devoted to managing, developing, and promoting the game with accountability and transparency.”
The Executive Committee has also authorized the Special Committee, with the assistance of Sidley Austin LLP and Alvarez & Marsal, to move forward on the reform programme and recommend changes to CONCACAF’s Statutes to be submitted to the congress.
Category: Caribbean Business, World Business
